Question 1

Is the spread really a cost if no fee shows up?

Accepted Answer

Yes. The spread is a hidden cost because you usually buy at the higher ask and sell at the lower bid. Even with no commission listed, that gap is money you give up on a round trip.

Question 2

Why are some spreads wider than others?

Accepted Answer

Spreads are tighter in liquid markets with many active buyers and sellers, and wider in thin or fast-moving markets where fewer orders are resting near the current price.

Question 3

Does the spread change during the day?

Accepted Answer

It can. Spreads often widen around news, at the open and close, and in low-volume sessions, then tighten again when activity is steady and liquidity returns.